Nintendo has firmly denied allegations that it employed AI-generated images to design billboards in the eagerly awaited game, Mario Kart World. The controversy arose following a Nintendo Treehouse livestream that provided fans with an early glimpse of the game. Observant viewers noticed peculiar images on in-game advertising boards, including a construction site, a bridge, and an unusually tall car, which sparked speculation about the use of AI.

While it's common for pre-release games to feature placeholder graphics that are later replaced, Nintendo was quick to clarify that no AI-generated images were used in the development of Mario Kart World. In a statement to Eurogamer, the company asserted, "AI-generated images were not used in the development of Mario Kart World."

The debate over generative AI is currently a hot topic across creative industries, including video game development. Beyond ethical and copyright concerns, labor unions are worried about AI's potential to displace jobs, and performers in the gaming industry are advocating for stronger protections against its use.

Last September, Nintendo's legendary developer Shigeru Miyamoto expressed that the company prefers to take a "different direction" from the broader video game industry regarding AI. This stance contrasts with comments from EA CEO Andrew Wilson, who described AI as "the very core of our business," a perspective further analyzed by IGN. Miyamoto emphasized Nintendo's unique approach in an interview with The New York Times, stating, "It might seem like we are just going the opposite direction for the sake of going in the opposite direction, but it really is trying to find what makes Nintendo special."

He elaborated, "There is a lot of talk about A.I., for example. When that happens, everyone starts to go in the same direction, but that is where Nintendo would rather go in a different direction."

Miyamoto's comments echo those made by Nintendo president Shuntaro Furukawa in July, who acknowledged that generative AI can be used "in creative ways," but also highlighted the challenges it poses to intellectual property rights. Furukawa added, "We have decades of know-how in creating the best gaming experiences for our players. While we are open to utilizing technological developments, we will work to continue delivering value that is unique to Nintendo and cannot be created by technology alone."

The much-anticipated Nintendo Switch 2, for which Mario Kart World is a console exclusive, is scheduled to launch on June 5. Pre-orders for the Nintendo Switch 2 began on April 24, with the console priced at $449.99. The pre-order phase was met with significant demand, as detailed in IGN's Nintendo Switch 2 pre-order guide.